Whether you’re new to the world of Microsoft or an experienced investor, there are a few things you need to know about the company and its stock. Read on for information on Windows 11, Office 365, Azure, and Activision Blizzard.
Windows 11
Despite a disappointing quarter for its commercial cloud business, Microsoft (MSFT) remains a viable stock choice for the long term. This is because the company recently introduced Windows 11, a slick and shiny new personal computer operating system that’s a worthy successor to its Windows 10 predecessor. Although the new OS won’t be available to consumers until later this year, it’s known as a free upgrade to Windows 10 users.
In addition to releasing Windows 11, Microsoft released its nifty-looking Surface Laptop 5. The laptop is an all-in-one device with a screen over four inches across. The model is currently on sale for a reasonable $499.99. In addition to the standard Microsoft Surface features, the laptop sports a few extras, including a touchscreen.
Other notable Microsoft products and services include the Surface Studio 2+ and the Xbox One. During its annual launch event, the company also introduced its latest iteration of the Surface Pro, the Surface Laptop 5. The newest Surface Laptop is a spiffy-looking laptop that closely matches Apple’s MacBook Pro.
Office 365
Earlier this year, Microsoft (NASDAQ: MSFT) completed a $19.7 billion acquisition of voice recognition software company Nuance Communications, giving the company more heft in the healthcare sector. The company also announced a partnership with Meta, an online community that helps people work together more effectively.
The company’s stock gained 37% on Monday and is headed for its best month since June. In addition, its board of directors has declared a quarterly dividend of $0.68 per share, a 10% increase over the previous quarter.
Meanwhile, the company’s Office 365 subscriptions represent 18% of its revenue. This product will likely generate $35.1 billion in fiscal 2022. In addition, its cloud-based productivity suite will serve as the central hub for the company’s productivity apps.
Among other things, Microsoft announced a new partnership with Meta to make its enterprise apps available on the cloud-based virtual office system.
Azure
Despite Microsoft’s disappointing fiscal first-quarter results, the company’s cloud platform, Azure, continues to deliver growth. Revenue for Azure grew 50 percent last quarter. As a result, its overall revenue is expected to reach $20 billion by the end of the fiscal year, according to Zacks Consensus Estimates.
Azure is a cloud computing service that lets companies store software applications. It competes with other major players such as Alphabet’s Google Cloud and Amazon’s AWS.
Microsoft has been building up its Azure cloud computing business in recent years. During this time, the platform has been able to gain market share. The company has also announced plans to increase its presence in the healthcare sector. Its cloud for healthcare solutions helps healthcare providers enhance patient engagement.
Microsoft operates in three segments: Productivity and Business Processes, More Personal Computing, and Intelligent Cloud. Its Productivity and Business Processes segment offers Office, Skype for Business, and other business solutions.
Activision Blizzard
Earlier this year, Microsoft announced that it would buy video game publisher Activision Blizzard for $69 billion. The deal has received international attention. The acquisition could be the most significant technology transaction in the United States. It could also put Microsoft ahead of rivals such as Sony and Tencent. However, the deal is facing considerable legal scrutiny.
The Federal Trade Commission (FTC) has filed a complaint against the deal, alleging that it will hurt competition in the gaming industry. According to the complaint, the merger would suppress competition in Microsoft’s gaming platforms. The FTC is expected to decide in November.
European antitrust regulators are also scrutinizing the deal. Activision has 400 million monthly active players in 190 countries, and Microsoft has various services.
Vesting schedule
Depending on your level of employment, you might receive Microsoft stock awards as part of your compensation package. Typically, these awards are called Restricted Stock Units (PSUs) and are a form of cash bonus with a bit of upside tied to the stock’s performance.
RSUs are taxed the same as ordinary income and are released in chunks over time. The number of shares granted is much smaller than option-based compensation. When you vest in your RSUs, you will gain control over the associated positions. In addition, you can sell the shares for cash. However, if you hold on to the shares for at least a year, you will get preferential long-term capital gains tax treatment.
Although the vesting schedule for Microsoft stock awards may vary, you can expect to receive annual and quarterly prizes. Each award is based on a merit-based system, and the size of your grant will be based on your job level.